A New Pain Threshold For Banks

Manhattan's Square

Ever since the financial crisis forced governments to bail out some of their banks with taxpayer money, regulators have been under pressure to come up with new global rules about how much capital banks should set aside to avoid a repeat of the disaster. After several years of difficult negotiations, a compromise may finally have been reached at a meeting of the Basel Committee on Banking Supervision, which met in Switzerland.

The upshot of the new rules, known as Basel IV,  is that European banks may have a harder time making loans, which could hurt the economy just as it begins to recover. Because the proposed solution will hit European banks harder than American financial institutions, some countries, especially France, are still trying to make adjustments to the final wording of the regulations. The deal will be discussed later this week on the sidelines of the International Monetary Fund meeting in Washington…

Read more : Handelsblatt, 11.10.2017